How to Pay Bills Online Through Your Bank

Paying bills online saves time and eliminates the need for paper checks, stamps, and envelope-licking. There are two ways to do it: through your bank's Bill Pay feature (one central place to pay all your bills), or by going directly to each company's website and setting up payment there.

This guide focuses on your bank's Bill Pay feature because it is the most practical option for most people. Instead of logging into five different websites to pay your electric bill, water bill, phone bill, and credit card, you manage everything from your bank account in one place.

Here is how Bill Pay works: your bank acts as the middleman between you and the companies you owe money to. You tell your bank who to pay, how much, and when. The bank then sends the payment — either electronically (which takes one to two days) or by mailing a paper check on your behalf (which can take five to seven days). From your perspective, you click a few buttons and the bank handles the rest.

To use Bill Pay, you need your online banking account set up (see the guide "How to Set Up Online Banking for the First Time" if you have not done this yet). Log in to your bank's website or app and look for the "Bill Pay" or "Pay Bills" option in the menu.

Before you can pay a company, you need to add it as a payee. You will need the company's name, their mailing address (found on your paper bill), and your account number with that company — which is also on your bill. This setup takes a few minutes the first time, but once a payee is saved, paying them in the future takes only seconds.

You can make one-time payments for any amount, or set up recurring automatic payments for bills that are the same amount each month — like a mortgage, car loan, or gym membership. For bills that vary month-to-month (like your electric bill), you can still automate the payment. But you will want to review the amount first.